ITR News: A parliamentary committee on Monday suggested some important changes after examining the new Income Tax Bill 2025. This bill will replace the old Income Tax Act 1961. Committee head BJP MP Baijayant Panda presented his report in the Lok Sabha. According to the committee, now you will get TDS refund even after filing ITR late.
TDS Refund News: If you have not filed ITR on time and TDS has been deducted, then there is no need to panic now. Because, now you will be able to claim taxpayers refund by filing ITR after the time limit, that too without any penalty.
In fact, a parliamentary committee on Monday suggested some important changes after examining the new Income Tax Bill 2025. This bill will replace the old Income Tax Act 1961. Committee head BJP MP Baijayant Panda presented his report in the Lok Sabha.
What changes did the committee suggest?
1. Relief in TDS refund:
ITR News: The committee said that if a person files ITR after the due date, then he should get TDS refund without any penalty. Currently, clause 263(1)(IX) in the bill says that it is necessary to file the return on the due date for refund.
The committee has recommended to remove it. The reason for this is that the income of many small taxpayers is less than the tax limit, but TDS is deducted from them. In such a situation, it is wrong to make filing of return for refund mandatory, because due to this there is a fear of penalty on them.
2. Tax exemption to religious-charitable trusts:
The committee has also given important suggestions regarding religious and charitable trusts. The committee has said that anonymous donations received by religious and charitable trusts, especially those put in the donation box, should not be taxed. Currently, clause 337 of the bill states that all non-profit organizations (NPOs) will have to pay 30% tax on anonymous donations, except those trusts which are formed solely for religious purposes.
But the committee says that many trusts do both religious and charitable work. It is wrong to tax their donations, because it is not always possible to find out the names of the donors. The committee recommended reintroducing exemptions like section 115BBC of the old Income Tax Act 1961, which exempted religious and charitable trusts from tax on anonymous donations.
3. Tax rule on NPO income:
The committee said that it is wrong to tax the entire receipt of a non-profit organization i.e. NPO. Because, tax should be levied only on “net income”. Therefore, it has been advised to re-include the word “income” in the bill.
Regarding this, the committee said that the purpose of the bill is to simplify the tax rules, but the rule of taxing anonymous donations for religious and charitable trusts can harm India’s NPO sector. Therefore, it is necessary to correct it.
…So now the legal hassle is over!
On this change of the parliamentary committee, tax expert Vivek Jalan (Partner, Tax Connect Advisory Services LLP) said that in view of the problems of taxpayers, the Finance Ministry removed clause 263 (1) (IX) from the bill. Now even if you file the return late, you will get a refund and there will be no legal hassle. Taxpayers are very happy with this change.
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